Lulu Retail on Monday announced its intention to proceed with an Initial Public Offering (IPO) and to list its shares for trading on the Abu Dhabi Securities Exchange (ADX).

In a press release on Monday, the company said that a total of 2,582,226,338 ordinary shares, each with a nominal value of $0.014 (equivalent to Dh0.051), representing 25% of the total issued shares in the company, are to be sold by the company’s sole shareholder, Lulu International Holdings Limited.

The offering will be made available to UAE retail Investors, including eligible employees of the group, professional investors, and eligible senior executives.

The subscription will open on October 28, and end on November 5.

The company is targeting a total dividend pay-out ratio of 75% of annual distributable profits after tax, paid semi-annually. A dividend for the six months ending 31st December 2024 will be paid in the first half of 2025.

Admission of the shares for trading on ADX is expected to take place on or around Thursday 14th November.

Commenting on the Offering, Yusuffali M.A., Founder, Chairman and Non-Executive Director of Lulu Retail, said, “It’s with immense pride that we announce the planned IPO of Lulu Retail on ADX, bringing to market the largest pan-GCC full-line retailer by selling space, sales and number of stores. We founded Lulu in 1974 with the ambition to introduce and embed organised retail in the UAE and a commitment to create a shopping experience that customers would love and remain loyal to.

“We have exceeded our own expectations and today Lulu operates more than 240 stores across six GCC countries, delivering immense value every day for new and loyal customers. Integral to our growth is the vision and ambition of the UAE, KSA and the other GCC nations where strong national leadership is enabling positive demographic and consumption trends and driving impressive economic growth. We’re looking forward to welcoming new shareholders to Lulu and are sure they will share our passion for the Company and excitement for the future.”

Saifee Rupawala, Chief Executive Officer of Lulu Retail, said, “Lulu is a brand synonymous with retail in the GCC and we’re incredibly proud to launch our IPO today. Over the past 50 years, we have grown from one store in Abu Dhabi to the largest pan-GCC retailer by market share and the fastest-growing player of scale in the Kingdom of Saudi Arabia. Every day, Lulu serves more than 600,000 shoppers, enabled by our unmatched international sourcing network across 85 countries, ensuring we are deeply rooted in all GCC markets and able to offer over 200,000 active SKUs, catering to all our customers’ diverse needs.

“With GCC retail presenting a $100 billion market opportunity over the next five years and our business in the Kingdom of Saudi Arabia primed for further growth, we are confident that Lulu will continue to be where the world comes to shop.” – editor@nrifocus.com